Attorneys representing former President Donald Trump said on Monday that their client has been unable to secure the $454 million bond to guarantee payment for the civil fraud judgment against him, despite attempts to negotiate with some of the state’s largest creditors. With the deadline for the bond payment arriving in less than a week, Trump is now at risk of having his properties seized to cover the penalty during the appeals process.
In legal filings submitted to the New York Court of Appeals, Trump’s legal team said that more than 30 surety companies have declined to accept the former president’s real estate holdings as collateral, instead requiring cash to guarantee the bond. A company the size of the Trump Organization would require upwards of $1 billion in order to cover the bond payment while also continuing to operate—an amount the company simply does not have at this time.
“Defendants’ ongoing diligent efforts have proven that a bond in the judgment’s full amount is ‘a practical impossibility,’” the Trump defense team wrote in the nearly 5,000-page document. “These diligent efforts have included approaching about 30 surety companies through 4 separate brokers … A bond requirement of this enormous magnitude — effectively requiring cash reserves approaching $1 billion—is unprecedented for a private company.”
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The enormous fee leveled against former President Trump stems from a civil fraud case in which New York Attorney General Letitia James sued him for allegedly overstating his net worth to mislead lenders. In his final ruling last month, Judge Arthur Engoron ordered Trump to pay $354 million and also banned him and his sons from conducting business in New York for three years.
As Valuetainment previously reported, in late February, the New York Appeals Court denied Trump’s request to delay the payment during the appeals process, requiring him to post the full amount plus interest, bringing the total to roughly $454 million. That amount is increasing by over $112,000 per day.
If the appellate court does not intervene, Attorney General James is authorized to enforce the judgments as soon as March 25th. She has previously pledged to seize Trump’s real estate assets, including Trump Tower, to cover the payment.
“If he does not have funds to pay off the judgment, then we will seek judgment enforcement mechanisms in court, and we will ask the judge to seize his assets,” James told ABC News last month. “We are prepared to make sure that the judgment is paid to New Yorkers, and yes, I look at 40 Wall Street each and every day.”
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However, as Trump’s legal team argues in the latest filings, the time crunch is entirely arbitrary given that there are no identifiable victims waiting to be repaid.
“The case involves no actual victims and no award of restitution, and [the attorney general] is fully protected by Defendants’ real-estate holdings. This factor alone warrants a stay,” the defense argued. “The judgment seeks to destroy a successful business that employs many hardworking New Yorkers, has contributed approximately $300 million in taxes to public coffers just during the dates in question in this case, and has made historic contributions to the State and City of New York.”
Connor Walcott is a staff writer for Valuetainment.com. Follow Connor on X and look for him on VT’s “The Unusual Suspects.”
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